China Everbright Bank Co. Ltd. (06818) is planning to spin off its wealth management business into a standalone subsidiary in hopes of attracting new investors.
However, it has no plans to list the unit, the Hong Kong Economic Journal reported Wednesday, citing president Zhao Huan.
Zhao said the move is aimed at promoting business innovation, tightening risk controls and improving governance standards.
Meanwhile, the bank said it expects a more difficult business environment and tougher management of asset quality amid a slowing Chinese economy.
Everbright’s non-performing loan ratio was 1.19 percent as of the end of last year, although it was still below the market average of 1.25 percent.
This article appeared in the Hong Kong Economic Journal on April 1.
Translation by Vey Wong
[Chinese version 中文版]
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